What is Credit Card Travel Insurance
If you are reading this, you are probably a traveler. Or at least you aspire to hold the coveted status of ‘traveler'. After all, that is what ToP is all about; teaching others how to travel using points and miles. As you travel more, the more you may consider having adequate travel insurance coverage. Fortunately for award travelers, many credit cards include some form of travel insurance protections as a benefit of card membership. These travel insurance coverages work to cover eligible travel charged to your credit card. In this article, we will discuss what credit card travel insurance is useful for, how to tell what is covered and what are the best cards for coverage.
RELATED: Age Old Question: Should I Buy Travel Insurance?
What Coverages are Offered by Credit Card Travel Insurance?
There are various kinds of travel insurance coverage offered by credit cards. In order to understand what these card benefits offer, its important to understand what coverage is offered. These different insurance coverages cover different potential losses to help you in case of any travel snafus. Depending on what coverages are important to you, you may want to choose a card that covers what you care about. Let's define some of these coverage types so you know what to look for. Below are some brief descriptions of many common coverages:
- Auto Rental Collision Damage Waiver (CDW): Covers losses from any damage to a rental car while in your possession
- Baggage Loss / Delay: Provides reimbursement for purchases you make due to lost or delayed luggage
- Emergency Evacuation: Covers necessary emergency evacuation expenses if you are injured resulting in an evacuation
- Emergency Medical: Provides coverage for emergency medical expenses that occur while you are traveling on a covered trip
- Travel Accident Insurance: Provides coverage for loss of life or other severe losses
- Trip Cancellation / Interruption: Reimburses non-refundable trip expenses due to covered cancellation or interruptions
- Trip Delay Reimbursement: Covers expenses incurred due to delays that result due to a covered hazard
A note on eligible charges: Some coverage require you to charge only a partial amount to get coverage, while others cover only up to the amount charged. For example, many baggage coverages cover any eligible trip as long as you charge some of it to a credit card. Therefore, charging the taxes of an award flight could score you some benefits. Other benefits such as trip cancellation typically only cover the amounts actually charged to your card.
How Can I Tell What is Covered by Travel Insurance?
When exploring credit cards with travel insurance, the best way to understand what is covered is to review the guide to benefits provided by your card issuer. This document outlines the specific types of coverage included, such as the ones we defined above. Each card may offer different levels of protection, so it’s essential to read the fine print carefully. Look for details on coverage limits, exclusions, and any necessary steps to file a claim. Additionally, some cards may require you to pay for your travel expenses using the card to activate the insurance benefits. By familiarizing yourself with the guide to benefits, you can ensure you’re fully aware of your coverage and can travel with peace of mind, knowing you’re protected against unexpected events. Below find links to all common credit card insurance guide to benefits by card issuer:
Chase:
- Chase Sapphire Preferred
- Chase Sapphire Reserve
- Chase Freedom Flex
- Chase Freedom or Freedom Unlimited
- Chase Ink Business Preferred
American Express:
- American Express Trip Cancellation
- American Express Trip Delay
- American Express Baggage
- American Express Rental Car
Barclays:
Citi:
Capital One:
A note on eligible purchases: It is worth mentioning that in order for coverage to apply, you typically need to charge at least some of the trip to your credit card to get benefits. The card you charge the travel to is the card that coverages would apply from.
What is the Best Credit Card for Travel Insurance?
There are many credit cards that may have adequate coverages for your travel needs. That said, there are some cards among others that shine through in terms of having more robust travel insurance benefits. The Chase Sapphire Reserve and Preferred offer very robust insurance, with comprehensive insurance coverages. If you have one of those cards, that is a fantastic option for travel insurance. Do keep in mind that you also have to weigh the cost of using a card with travel insurance with using a card with a sign up bonus, if you are working on one.
Credit Card Travel Insurance: ToP Thoughts
Travel insurance is a welcomed benefit for most award travelers. Understanding what coverages are in effect can help you decide which card to use, or what you may be eligible for if a loss has already occurred. Of course we all hope that our travels will go smoothly, but having insurance benefits can assist when things do not go according to plan. Do you have a favorite credit card for travel insurance? Let us know which one over in the ToP Facebook Group.
